The US is currently engaged in an extreme case of brinksmanship with it's credit rating hanging in the balance. However, outside of the political calculations currently taking place there are two key areas of the economy which these events are already negatively impacting.
Read more

The FX majors and the commodity bloc currencies consolidated for the most part as the market waits on a potential deal from Washington D.C. There were conflicting reports, but overall the signs are positive, which has alleviated some of the pressure on speculative positions.
Read more

The FX majors and the commodity bloc currencies consolidated in Asia as the market waits on a potential deal from Washington D.C. There were conflicting reports, but overall the signs are positive, which has alleviated some of the pressure on speculative positions.
Read more

Signs of progress in U.S. budget talks set the backdrop for a USD rally, which occurred during the European AM session and drove the EUR-USD to a five-day low, though the catalyst came from a remark by China's vice finance minister, who said that it was vital the America maintains the promise to not default on its bonds.
Read more

There wasn't a big reaction in currency markets during the pre-European open Asia session to the news of "tremendous progress," in the words of Majority Leader Harry Reid, in negotiations with regard to a deal to suspend the U.S. debt ceiling through Feb-7 and fund the government through Jan-15.
Read more

Yesterday, the Chinese National Statistics Bureau reported the following regarding inflation:In September, the consumer price index (CPI) went up by 3.1 percent year-on-year. The prices grew by 3.0 percent in cities and 3.3 percent in rural areas. The food prices went up by 6.1 percent, while the non-food prices increased by 1.6 percent.
Read more

The market was very quiet due to holidays in Japan, Hong Kong, U.S. and Canada. Weekend developments were mainly negative, though the impact was muted due to a lack of market participation, which left sideways movement in FX. The dollar was a touch lower overall, leaving EUR above 1.3550 and Cable just shy of 1.6000.
Read more

The FX market was quieter than usual due to holidays in Japan and Hong Kong, while the U.S. and Canada are also closed today. Weekend developments were negative, leaving sideways movement via JPY after last week's losses. The dollar was lower overall, leaving EUR above 1.3550 and Cable just shy of 1.6000.
Read more

- by New Deal democratThe government shutdown prevented the reporting of retail sales, producer prices, and business inventories. The only significant monthly data that was reported was the University of Michigan's consumer sentiment index. Sentiment about current conditions stayed steady, but future expectations dropped precipitously to a 2013 low.
Read more